Noora is considering selling her store’s old equipment to Rashid. Rashid would like to pay 1000 Rial for the equipment. How can Noora record the value of the equipment in her business’ accounting records? Should Noora write the market value, Noora’s cost, or the amount she will receive from the sale? a. Faithful Representation b. Historical cost principle c. Stable-monetary-unit assumption d. Entity assumption
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Noora is considering selling her store’s old equipment to Rashid. Rashid would like to pay 1000 Rial for the equipment. How can Noora record the value of the equipment in her business’ accounting records? Should Noora write the market value, Noora’s cost, or the amount she will receive from the sale?
a.
Faithful Representation
b.
Historical cost principle
c.
Stable-monetary-unit assumption
d.
Entity assumption
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- Select all the items that are not relevant for decision making from the list below: A. Loss in gross margin B. Direct advertising C. General advertising D. Rent E. Depreciation: Store fixtures F. Depreciation: Delivery equipment G. Store management salaries H. General office salaries I. General office - other J. Insurance K. Utilities L. Employment taxesIdentify the letter for the principle or assumption from A through F in the blank space next to each numberedsituation that it best explains or justifies.A. General accounting principleB. Measurement (cost) principleC. Business entity assumptionD. Revenue recognition principleE. Expense recognition (matching) principleF. Going-concern assumption If $51,000 cash is paid to buy land, the land is reported on the buyer’s balance sheet at $51,000.What part of the A=L +SE does expenses and revenues under and are they CR or DR balances? Expenses cost money so paying expenses would credit the Cash Asset account isn't that correct? Then wouldn't that be made equal buy obtaining an asset in some for that would DR the Asset account? Please answer the same for Income and Revenues
- A seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liabilityHow can you describe the term Historical Cost? a. It is the amount paid to purchase an item plus any amount paid to get it working at first place. b. It is the amount one could purchase the similar item from the market, to that we already possess. c. The cost of an item together with the inflation for the period of time one intends to hold it. d. It is the amount one could sell an item for in the market place.Questions: 1. What is the total value of the asset that Ms. QWE contribute to the business? 2. Determine the value of Ms. QWE's ownership in the business.
- Fill in the blank with these terms : long term, expense, balance sheet, Stockholder's equity, revenue, current revenue, service, costs, goods Revenues are monies an organization received in exchange for______ and______ it provides. Expenses are the ______incurred to generate .______ Net income is the difference between _______ and . ______ A________ indicates the financial position of an organization at a particular point in time. ______ assets generally are cash or will become cash within 1 year. ______ liabilities are obligations that must be paid after 1 year. ________ consists of contributed capital and retained earnings.The value of a business is determined by a. what a buyer with the cash is prepared to pay. b. what a valuation formula determines its worth is to the buyer. c. what a valuation formula determines its worth is to the owner. d. what the owner believes the business is worth.rd D-Activities carried out following the actual buy and sell transaction. c- Activities carried out to identify the need for an actual buy and sell transaction. d- Activities carried out prior to the actual buy and sell transaction. 5- The ratio of Profit Before Tax Assets is known as? a-Net Profit after Taxes b-Return on assets c-Cost of Goods Sold d-Asset Utilization 6-When breaking down Total Cost of ownership, the four elements of cost are...? a- Quality, Service, Deployment, and Price b- Quality, Service, Delivery, and Production c- Quality, Set-Up, Delivery, and Price d- Quality, Service, Delivery, and Price 7-The Purchasing Organization in a firm can contribute to providing a competitive advantage E a-the profit-leverage effect b-the return on assets effect c-reducing annual spend d-improving process efficiency e-all of the above MacBook Pro
- Give one word or a term used to describe the following: a) An allowance by a creditor to debtor for prompt payment.b) Commodities in which a business deals. c) An obligation which may or may not materialise.d)An exchange of benefit for value.e) Things of value owned by business to earn future profits. f) Assets like brand value, copy rights, goodwill.An analyst must be familiar with the determination of income. Income reported for a business entity depends on proper recognition of revenues and expenses. In certain cases, costs are recog- nized as expenses at the time of product sale; in other situations, guidelines are applied in capi- talizing costs and recognizing them as expenses in future periods. Required: a. Under what circumstances is it appropriate to capitalize a cost as an asset instead of expensing it? Explain. b. Certain expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the rationale for recognizing expenses on such a basis.1. Landscape, Inc. includes an estimate of warranty expense in the year in which it sells its lawn mowers, which carry a two year warranty 2. Lower of cost or market is used to value inventories. Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers